Question

In 1959, a limited partnership (Pacific International Fisheries) was formed. Nelson was the general partner, and Lieberman and M. and I. Winkleman were limited partners. The primary purchase of the partnership was a ship called the Jamene On May 1, 1959 the Jamene was destroyed by an explosion and fire initiated by Nelson. Lieberman and M. Winkleman sued the insurer (Atlantic Mutual Ins. Co.) to recover their loss.Are Lieberman and Winkleman entitled to payment?

Answer 1

Answer:

No. Lieberman and Winkleman aren't entitled to recover anything from insurer.

Explanation:

Lieberman and Winkleman being limited partners can't sue on the behalf of the company because they aren't considered by law a proper party that has the power to institute a sue. Ship was purchased by the company to which General partner has all the power, and for the recovery of damages of ship, only Nelson can institute a lawsuit as him being a general manager. Since lieberman and winkleman have limited partnership interest they can't sue insurer(Atlantic mutual ins. Co.).